Reform of the postal law: Competitors fear a struggle for survival

Reform of the postal law: Competitors fear a struggle for survival

According to a report by www.stern.de, Deutsche Post is to be exempt from sales tax in its corporate mail business. This proposed law is causing anger among smaller competitors who see the postal service as a threat to their existence.

The change to the postal law initially entails a possible tax subsidy of over 300 million euros per year for Deutsche Post, which would lead to a one-sided strengthening of the company in the mail business. Walther Otremba from the Federal Association of Letter Services (BBD) fears that this will unfairly influence competition and ultimately endanger the existence of smaller companies.

The tax relief would only benefit Deutsche Post, while smaller companies would still have to charge sales tax. This could put the post office in a monopoly-like position, which would significantly change the conditions of competition.

The planned reforms could also severely impact the market share and growth of smaller companies. According to the Federal Network Agency, Post's competitors generated 1.1 billion euros in sales last year, which corresponds to a market share of around 14 percent. The reform of the postal law could therefore have a significant impact on the entire industry, especially if it is completed as planned in spring 2024.

Given all these facts, it is important that the financial industry and the government consider the impact of this tax relief very carefully to ensure fair competition in the postal industry.